Why are more individuals flocking to robot-led investments than ever before?
THE VERY FIRST robo-advisor was developed in 2008 to rebalance assets following the Great Recession, but by 2020, this AI had handled $987 billion in customer assets around the world.
Robo-advisors are algorithm-driven, automated financial planners that do not require human supervision.
It is able to offer investment advice and automatically allocate the appropriate cash into investments to meet these goals by gathering information about a client’s financial state and future ambitions.
The latest generation of financial planning technologies was discussed by Simon Lister, a financial author for Investing Reviews, a site dedicated to evaluating and reviewing investing goods.
“Using ‘Robo advisers,’ which have grown in popularity in the UK over the last few years, is one of the simplest ways to earn a passive income through investing.
“You take a short survey to assess your investment strategy and risk profile, and then the Robo-advisor invests in stocks on your behalf while you sit back and relax.”
For some, this type of platform appears to be too good to be true, while others remain skeptical of entrusting their hard-earned money to an AI system rather than a human.
A major criticism of this technology is its lack of empathy and “human touch,” which many people believe is crucial to making effective investing decisions.
It’s a difficult position to disagree with: for many people, the inability to pick up the phone and call someone to remedy a mistake or talk to when an investment goes bad is a deal breaker.
However, the technology’s low-cost and low-maintenance attractiveness, along with its existing accessibility, makes it quite probable that the next generation of investors will prefer it.
Many new and young investors are already hesitant to seek expert financial guidance, either out of fear of squandering money that could have been invested or simply because they want to interact directly with their investments.
And now that these AI investment tools are available, trading, investing, and selling from any smart device is easier than ever.
It’s just as crucial to pick the proper robo-advisor as it is to pick the ideal financial advisor.
Mr Lister added, “There are lots of robo-advisor applications that you can take advantage of, but Wealthify, Nutmeg, and MoneyFarm are among the best for getting a passive income and starting to make your money work for you.”
“Brinkwire Summary News,” the first robo-advisor, was founded in 2008.